XRP trading activity has been on the rise, shifting attention beyond its traditional use in payment solutions. The potential approval of XRP Spot ETF applications could have a substantial impact on both its price and market visibility.
Currently, XRP is valued at $0.5075, reflecting a modest 0.48% increase over the past 24 hours. This aligns with the broader crypto market’s marginal 0.09% gain after a day marked by losses. However, XRP did touch a ten-day low of $0.4917 before this recovery.
In recent months, the XRP Ledger has experienced notable changes in network activity. Studies indicate a significant increase in trading operations, with payment transactions now making up only 44% of total activity, compared to 88% earlier this year. The growing popularity of the OfferCreate feature highlights an increased emphasis on decentralized exchange (DEX) functions and asset issuance, showcasing Ripple’s strategic move to diversify beyond just payments.
The possibility of an XRP Spot Exchange-Traded Fund (ETF) has sparked considerable interest. On November 1, 21Shares submitted its application for an XRP Spot ETF, with plans to list on the Cboe BZX Exchange. This follows similar ETF filings from prominent companies such as Bitwise and Canary Capital. If approved by the U.S. Securities and Exchange Commission (SEC), these ETFs could position XRP alongside Bitcoin and Ethereum, both of which already have established Spot ETFs.
XRP Bulls Poised for a Rally?
From a technical standpoint, XRP is currently challenged by resistance at the 50-day and 200-day moving averages, both near $0.55. The approval of a Spot ETF could act as a catalyst for XRP to surpass these resistance levels, potentially aiming for $0.60 or higher. Key support remains around the $0.50 mark.
Furthermore, Grayscale has opened its XRP Trust to eligible investors, signaling a strategic move that could foreshadow an ETF launch. Given Grayscale’s prior success with Bitcoin-based ETFs, this strategy holds promise, although the initial trading phase of the XRP Trust saw some price declines.
As excitement builds, the SEC’s continued silence on ETF approvals keeps the market in suspense. An official decision could either propel XRP into a significant rally or introduce additional uncertainty in the market.
